Owners and management of the company often spend years managing  all of their company’s operations, as well as marketing and finances. However, business needs to grow and eventually there comes the point when owners have to hire dedicated experts and other leaders to help them run the business.  

One of the first integral positions a company should fill on the leadership team is the chief financial officer (CFO). A CFO will lead the finance department and support especially the leadership team to make better decisions based on data. CFO’s main task isn’t to tell what number is last in a financial statement or tell management why there is that specific number. A full-time CFO might be too costly for early-stage companies and small- and mid-size companies as well. That’s when hiring a part-time CFO (CFO as a Service) is a great option.  

What does a part-time CFO do? 

A part-time CFO is a finance professional who manages the critical strategic financial analysis company needs to succeed. Working with a part-time CFO can give a company the leadership and insights needed to manage the company’s finances or give important insight on risk management. Additionally, businesses can hire a part-time CFO on an hourly, project, or subscription basis, which is a more flexible alternative to customers, rather than taking on a full-time hire’s long-term cost.

A few examples of what part-time CFO services include:  

1. 1. Managing a company’s cash runway and spend.
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3. 2. Helping to identify and track company specific key performance indicators that are important for understanding a company’’s financial health.
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5. 3. Creating and managing the company’’s annual budget by forecasting revenue and expenses.
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7. 4. Forecasting potential financial scenarios to inform business strategies.
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9. 5. Reviewing and advising various contract negotiations. 
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11. 6. Taking care of risk management.

A part-time CFO can also explain the significance of financial insights and metrics to the company’s leaders so they can make strategic decisions. 

Why hire a part-time CFO? 

Many companies benefit from the guidance and support a CFO offers because he/she can help address financial goals or challenges a company faces. So when is a good time to hire a part-time CFO? When your company is:  

• Struggling with cash crunches: Managing cash flow can be vital for a business’s survival. A part-time CFO can suggest ways to smooth your cash flow and improve profitability. 
• Needing a clearer picture of the future: Bookkeepers and accountants can help keep your business’s historical financial transactions organized. A part-time CFO analyzes your historical financial reports and uses their industry expertise to help forecast and model your business’ future.
• Needing help with profitability: A part-time CFO can help companies to build efficiency programs to boost profitability. 
• Needing help with products or services pricing: A part-time CFO can make proper suggestions on product or service pricing. Getting the proper framework could help your company save time and make money later. 

Building your finance team 

It’s never too early to hire a part-time CFO. Vatzy CFO team works with companies in various industries. Dependent on customer size, we have been able to help them all. It is important to remember that flexibility is a key factor when hiring a part-time CFO. The flexibility of the part-time CFO engagement, whether it starts at a few 2 hours or goes up to 150 hours a month, allows a CFO to help set up your company to succeed. It might even be more efficient to hire a part-time CFO, instead of hiring a full-time CFO to the company’s payroll. In addition, their role will continually evolve in nature and depth of engagement as your company scales, which increases the probability of future success.  

Now is the time to reach out to a CFO to help your company prepare for the uncertainty of 2023 and set your business up for success. Contact us and let’s find a solution to your company together.

Photo by Ibrahim Boran on Unsplash